Alfen 2018 FY Results. 20 February 2019

Transcription

1 Alfen 2018 FY Results 20 February 2019

2 Disclaimer This communication may include forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms such as guidance, expected, step up, announced, continued, incremental, on track, accelerating, ongoing, innovation, drives, growth, optimising, new, to develop, further, strengthening, implementing, well positioned, roll-out, expanding, improvements, promising, to offer, more, to be or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect Alfen N.V. (Alfen) s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Alfen s business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward-looking statements reflect the current views of Alfen and assumptions based on information currently available to Alfen. Forwardlooking statements speak only as of the date they are made, and Alfen does not assume any obligation to update such statements, except as required by law. Alfen's revenue outlook estimates are management estimates resulting from Alfen's pursuit of its strategy. Alfen can provide no assurances that the estimated future revenues will be realised and the actual revenue for the financial year 2019 could differ materially. The expected revenues have also been determined based on assumptions and estimates that Alfen considered reasonable at the date these were made. These estimates and assumptions are inherently uncertain and reflect management's views which are also based on its historic success of being assigned projects, which may materially differ from the success rates for any future projects. These estimates and assumptions may change as a result of uncertainties related to the economic, financial or competitive environment and as a result of future business decisions of Alfen or its clients, such as cancellations or delays, as well as the occurrence of certain other events. More details on Alfen s 2018 performance can be found in the 2018 annual report and the 2018 results press release, published together with this presentation. A more comprehensive discussion of the risk factors affecting Alfen s business can be found in Alfen s prospectus dated 12 March 2018, which can be found on Alfen's website, 2

3 Highlights 2018 Full year 2018 revenues of 102m and revenue growth of 37%, compared to 21% the year before Supported by all business lines: revenue growth in Smart grid solutions of 30%, EV charging equipment of 37% and Energy storage systems of 87% Success of internationalisation strategy with 28% revenues outside the Netherlands, compared to 18% in 2017; new market entries in Finland, Sweden and France Demonstrating the company s strong position in the market, Alfen increased its gross margin to 30% vs 29% in 2017 Adjusted EBITDA of 3.6m vs 4.9m in 2017, impacted by accelerated investments in Smart grids solutions to accommodate a hampering supply chain and continued investments in Energy storage despite some delays in order intake Reconfirmation of strategy and medium-term objectives, with expected revenues for 2019 between 135m and 145m, supported by a strong market outlook, important new client wins, a 60% larger order backlog and a stronger projects pipeline compared to last year 3

4 1. Introduction 2. Progress against strategy 3. Financials and outlook 4

5 Unique integrated business model Secondary substations for electricity distribution grids Microgrid projects Grid automation Service Smart grids Battery-based energy storage systems Software for remote control and support Service EV charging Energy storage Smart, connected EV chargers Home, business and public applications Load balancing and smart charging solutions Service Fully integrated offering for projects across three business lines Cross-selling In-house development of all products with a strong innovation team Open architecture: most suitable components for our products and systems Technological capabilities to provide optimal solutions for our customers and adapt to rapidly changing markets 5

6 Energy market paradigm shift Increase in renewables Decentralisation of energy Growth of electric vehicles European wind and solar PV capacity Decentralisation ratio of electricity Market share of EVs in Europe (3) as % of total generation capacity (1) production in Europe (1,2) 70% 18% 100% 60% 50% 40% 30% 20% 10% 0% % 12% 9% 6% 3% 0% % 60% 40% 20% 0% ) Source: Bloomberg New Energy Finance (June 2018); 2) Decentralisation ratio is the ratio of residential decentralised solar PV and storage to total installed generation capacity; 3) Chart reflecting new light vehicle sales, source: DNV-GL Energy Transition Outlook 2018

7 Fast growing markets across Alfen s three business lines Smart grids Substation investments Dutch top-3 DSOs (1) (# of new substations) 995 1, % 1,266 1,404 EV charging European charging points development (2) (# of charging points in millions) +38% Energy storage EMEA cumulative installed energy storage capacity, excl. residential (3) (GW) European grid-tied commercial and industrial microgrid installed capacity (2) (MW) % % Rest of Europe France Norway Germany United Kingdom Netherlands ) Analysis based on Kwaliteits- en capaciteitsdocument Alliander, Enexis and Stedin as published by the DSOs in December 2017; 2) Navigant Research January 2019; 3) Bloomberg New Energy Finance (November 2018)

8 1. Introduction 2. Progress against strategy 3. Financials and outlook 8

9 Acceleration of revenue growth driven by all three business lines Alfen revenue Smart grid solutions EV charging equipment Energy storage systems +21% +37% % % 12.3m +87% 15.6m m 8.3m ) Including 8.4m from Alfen Elkamo

10 Accelerated investments preparing for future growth Although the energy storage business line showed strong growth, some orders that were anticipated for 2018 have been delayed to 2019 This is a result of the nascent stage and therefore somewhat unpredictable character of this market As we are positive about the energy storage market and as our pipeline is developing favourably, we have continued investing in expanding our organisation, R&D and production facilities for energy storage during 2018 Because of this we are fully prepared for further strong growth in 2019 and beyond A step-up in growth in our Smart grid solutions business line resulted in a hampering supply chain in H To mitigate the effects of these supply chain issues, we accelerated the hiring of new production personnel. As the supply chain is catching-up, the additional personnel in the Smart grid solutions business line is expected to be sufficient to facilitate Alfen s growth outlook in this business line for

11 Four levers of growth Market growth Benefitting from strong market growth trends Internationalisation Significant internationalisation opportunity, fast-tracked through selected M&A of small regional platforms Cross-selling Increasing cross-selling opportunities between Alfen s three business lines and offering of integrated solutions Service Expanding existing service offering and benefitting from increasing installed base 11

12 Market growth Market growth set to continue in 2019 Smart grid solutions Realised SDE+ solar PV projects in NL 1 (MWp) EV charging equipment New (PH)EV car registrations 2 ( 000) Energy storage systems EMEA new build energy storage capacity 4 (GW, excl. residential) % Largest project per year: 6 MW 6 MWp 30 MWp 55 MWp % Rest of Europe Benelux France UK DACH Nordics +58% Continuation of growth expected based on a total of 6GWp awarded SDE+ subsidies for solar PV between 2017 and 2018 (Spring) that have to be realised within 3 years after award Increasing project sizes requiring more complex solutions which Alfen can deliver Market introduction of lower cost models in the next years: Tesla Model 3, Hyundai Kona, Kia e- Niro, Nissan Leaf, Volkswagen eup and I.D. Neo, Opel ecorsa OLEV grant in the UK requiring all home chargers to use innovative smart technology by July 2019, playing into Alfen s favour 3) BNEF: We have become much more bullish about storage deployments since our last forecast a year ago. This is partly due to faster-than-expected falls in storage system costs, and partly to a greater focus on two emerging applications for the technology electric vehicle charging, and energy access in remote regions. 12 1) CertiQ (independent metrology institution for SDE+ subsidy scheme); 2) European Automobile Manufacturers Association; 3) 4) Bloomberg New Energy Finance (November 2018)

13 Internationalisation Success of internationalisation with expansion of sales organisation to France, Sweden and Finland International revenues Revenues outside the Netherlands as % of total 8% 18% 28% Comments Expanded existing sales teams in Germany and UK Hired new sales manager for Sweden (as per July 2018) and France (as per October 2018) Alfen sales organisation at 31 December 2017 New countries entered in 2018 Installed base of Alfen products Products introduced in Eastern Europe, amongst others for an integrated EV charging and storage network in Poland and Slovakia Further extended position in the Nordics through Elkamo acquisition 13

14 Internationalisation Update on the Nordics: solid growth in smart grid solutions and first steps in EV charging and storage Electricity generation capacity in the Nordics (GW, base case scenario) % 52% 12% 18% 24% 30% 51% 49% 50% 53% 22% 20% 20% 15% 20% 17% 13% 11% 11% 2014 Storage in the Nordics (annual market size in MWh) % 100% Wind and solar Hydro Nuclear EVs in the Nordics (# in millions) 3 Conventional Alfen: success across all business lines Solid growth in Smart grid solutions driven by investment programs of grid operators to rebuild large parts of the electricity distribution grids from overhead lines to underground cables Success in EV charging through accounts such as Virta (Finland), SellPower (Sweden) and E.On (Denmark) Energy storage project for TrønderEnergi (Norway) and pipeline with energy storage projects in Finland, Sweden and Norway 1 CAGR: +70% Notes: 1) Source: International Energy Agency / Nordic Energy Research, Nordic Energy Technology Perspectives 2016; 2) Front-of-meter battery energy storage, source: Delta Energy & Environment Ltd. 2018; 3) Source IEA Nordic EV Outlook 2018

15 Cross-selling Increasing spin-offs from unique cross-selling capability Case study Allego Smart grids solutions EV charging equipment Selling EV chargers to Allego for public and semi public locations in the Netherlands since 2015 Expanded to Belgium in 2017, selling public chargers to Allego for the Eandis/Infrax grid areas EV charging (2015) Smart grids (H1 2018) New framework contract between Allego and Alfen in H for the supply of transformer substations to connect Allego s EV charging stations in various countries New Allego partnership with Leaseplan in 2018 to provide its EV customers with access to personal charge points at home and at work, initially in the Benelux, France, Germany, Norway, Portugal and Sweden Energy storage (H2 2018) Energy storage systems Project awarded in H to supply two mobile energy storage systems that will be deployed in combination with Allego s ultrafast charging stations for electric vehicles 15

16 Service On-track to expand service offering Smart grid solutions Benefitting from increasing installed base of projects in greenhouse horticulture and solar PV segments Strengthened service department with additional employees EV charging equipment Lined-up international service partners in Belgium, UK and Germany Upgraded platform with new functionalities and improved remote serviceability New orders for management and maintenance for the city of The Hague and EVNetNL Energy storage systems Standardised service offering as part of our new storage projects Roll-out of remote service, control and performance monitoring through TheBattery Connect 16

17 Important wins Smart grids Grid connections for fast charging stations across various European countries New framework agreement for the supply of commercial transformer substations throughout the Netherlands Multiple project wins for connecting large-scale solar PV farms to the grid Project win to integrate an innovative floating solar park in the ECW grid (which includes greenhouses such as Combivliet and a Microsoft data center) EV charging Supplying EV charging equipment to Jaguar customers and dealerships, covering the Benelux through Eneco and Switzerland, Portugal and Spain through other resellers Order from carmaker Opel to supply electric charging stations for the company s headquarters in Rüsselsheim, Germany D Ieteren Auto (Volkswagen Group brands importer in Belgium) selected Alfen to start offering EV chargers to its electric car customers and to equip its dealerships across Belgium with EV chargers New framework agreement for the sale of EV charging equipment in the UK Energy storage 10MW energy storage system connected to Hartel windfarm in the harbor of Rotterdam, the Netherlands 2.2MWh energy storage system (based on 52 BMW i3 car batteries) connected to a Green City wind farm in Southern Germany First cooperative-owned energy storage system connected to a solar PV farm in the Netherlands Off-grid energy storage system for waste-collecting company Ibogem in Belgium to increase the selfconsumption of solar energy 17

18 1. Introduction 2. Progress against strategy 3. Financials and outlook 18

19 Income statement in Revenue and other income 101,893 74,336 Smart grids 74,031 57,043 EV charging 12,277 8,952 Energy storage 15,585 8,341 Gross margin 30,216 21,630 as % of revenues 30% 29% Personnel cost 19,054 12,773 Other operating cost 8,757 4,842 EBITDA 2,406 4,015 One-off costs and special items 1, Adjusted EBITDA 3,623 4,887 as % of revenues 4% 7% Adjusted net profit 814 2,375 Revenue growth driven by strong market growth across our business lines, further bolstered by internationalisation, cross-selling and service Slightly increasing margins, demonstrating our strong market position Increase in FTEs from 234 at 31 December 2017 to 410 at 31 December 2018, including 70 FTE at Alfen Elkamo. Strong increase reflects hires to be prepared for the anticipated further growth in 2019 and beyond, amongst which accelerated investments in Smart grids solutions to accommodate a hampering supply chain across this industry Increase in other operating cost driven by a growing organisation, higher recruitment costs, rental costs related to an expansion of production facilities for energy storage systems, advisory costs related to Alfen s publicly listed status as well as certain one-off costs and special items ( 1.2m vs. 0.6m in 2017) Adjusted EBITDA impacted by accelerated investments in Smart grids solutions and continued investments in Energy storage despite some delays in order intake 19

20 Balance sheet in Non-current assets 16,530 8,830 Current assets 38,846 21,026 Cash and cash equivalents Total assets 56,225 29,856 Non-current liabilities 8,785 2,713 Current liabilities 32,581 19,113 Bank overdraft 7,924 1,224 Equity 6,935 6,806 Total equity and liabilities 56,225 29,856 Capex amounted to 6.0m as compared to 3.7m in Capex includes amongst others refurbishment of a new premises, investments to expand the amount of substation moulds in the context of a growing Smart grids business as well as 3.4m of capitalised development costs which demonstrates our continued efforts to invest in innovations for the future Tangible and intangible assets resulting from the Elkamo acquisition of 4.4m In January 2018, Alfen obtained two loans (each with a principal amount of 0.875m and a duration of 10 years) used for the refurbishment of the buildings located at the Hefbrugweg in Almere. To fund the Elkamo acquisition of 1 July 2018, a new loan was obtained ( 5.0m, redemption in 7 years) Working capital increased to 6.3m (versus 1.9m at the end of 2017) mainly due to increased stock and debtor levels reflecting further growth of the business 20

21 Well prepared for further growth in 2019 We continue to anticipate positive market developments in all our business lines and are well positioned for further growth: Smart grid solutions: benefitting from grid investments and strong growth in the solar PV sector EV charging equipment: benefitting from various new EV models that are coming to the market, the ramp-up in volumes from several important contracts, our anticipated new charging product for the residential market and the UK incentive scheme for smart chargers Energy storage systems: benefitting from our track record with multiple customers across all major storage applications, the introduction of several new innovative storage features during 2018 and a promising projects pipeline On top of the positive outlook for each of our business lines, we increasingly benefit from repeat customers as well as our ability to offer integrated solutions. Furthermore, we expect to further benefit from our expanded international footprint and plan to continue expanding our international salesforce For 2019, we expect our revenues to be between 135m and 145m, driven by continuing high market growth, reaping the benefits of our international expansion strategy, increasing cross-selling opportunities between our business lines and our expanding service offering. This growth outlook is further supported by a 60% larger order backlog compared to the start of 2018, a stronger projects pipeline and customers guidance on 2019 volumes under our framework agreements 21

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